Making an offer

You call the broker and make an offer. Alternatively, you can have your lawyer call the broker. Some people have pre-approved financing, but I'm not sure how that works in this market.

If you don't have a lawyer yet, you should start searching for one soon. You don't want to start the serious negotiations until you have an experienced representative.

Posted by: guest at March 13, 2008 3:10 PM

the selling broker typically will provide the requirements or forms required for putting in the offer.

Posted by: guest at March 13, 2008 3:35 PM

When I made an offer on a co-op, the broker sent over something she called the "deal sheet" which was a short form with spaces to fill out for the amount offered, what percent I intended to put down and some information about my financial situation, including my income and debts (other mortgages, car payments, student loan payments, etc). They are also trying to get a sense of how realistic your offer is in light of your financial situation. Good luck!

Posted by: guest at March 13, 2008 3:58 PM

Yes, but you don't need an attorney until your offer is accepted. Then you need one right away - the name and address of which the seller will give to their attorney, so they can send a contract to yours. Just ask people you know for recommendations.

Posted by: guest at March 13, 2008 4:11 PM

Major contingencies should be stated with the offer.
Such things as: I need to sell my apartment first. I need to close in 30 days, or I can't close for 6 months.

Posted by: guest at March 13, 2008 4:14 PM

Contingencies, I think, are best handled by one's attorney, unless the broker (or seller) asks you about such stuff - and they will, once you fill out a form saying you own an apartment and haven't mentioned that it is in contract. Closing in 30 days won't happen. If you want to close in 6 months, don't make an offer - it is for sale now, no?

Posted by: guest at March 13, 2008 4:42 PM

I have a similar question but want to know if my own agent is full of crap or not. I had found online a brownstone in Bed-Stuy that is really nice, and wanted to see the inside and a friend of a friend is a realtor with ERA and said he could show my partner and me the house and act as our agent. We said great. He said we should get a pre-qualification letter in advance so he would know that he wasn't wasting time as it was his company's policy. We said no problem and it took about 5 minutes to get the letter from the bank. So we went and saw the house, twice, and was ready to make an offer and were told that the seller's broker (Corcoran) required a loan pre-approval letter that stated we could get the loan. No problem. We did that by talking to the bank who has our current mortgage, gave them all the details, paperwork, employment and financial info etc., and they approved us with no problem even more that the price we were wanting to offer. So we were getting ready to make the offer when our agent sayd we now have to give him all the financial details, banks, employer stuff, credit reports, etc otherwise he cannot present the offer. WTF??? I already gave that to the bank before they would give me the pre-approval letter. Neither my agent (ERA) nor Corcoran is loaning me money, and they have all the proof they need in my actual loan approval letter. I said there is no way that it can be legal for a real estate agency to require all that just to present an offer to the seller and he assured me it is legal and the only way he could make an offer on my behalf. I told him to shove it that I am not handing over all my personal financial records to either brokerage just to make an offer when I already have the letter. So now we have no idea what to do. That was yesterday and he hasn't called me back today so I'm guessing he's mad. He said Corcoran also required all that info as well as the letter. I am tempted to call the attorney general and see if that is a legal requirement just to present an offer through a real estate brokerage. I can see the seller himself wanting to know if I could pay for it before accepting the offer and taking it off the market or at least pulling it off the active listings, but this brokerage requiring it is ridiculous if not illegal. Anyone who is a broker on here know what the law says?

Posted by: guest at March 13, 2008 6:37 PM

I can tell you that I have made offers on Corcoran properties (not through an agent) and they do not require such detailed info. That guy is trying to scam you. Do not give him your confidential information. Just call the Corcoran broker directly and make your offer. And, yes, I would report him to the AG.

Posted by: guest at March 13, 2008 7:35 PM

Thanks for the help guys. (I'm 6:37). We used to live out of state (been here about a year now) and I kept telling him that I have bought several houses in my previous state before and yes I had to have a pre-approval letter a couple times before the seller/owner would actually accept the offers, but never what he was saying was needed. He kept telling us that NYC was different from anywhere in the country and that every real-estate agency was required to keep all this info in a file in order to place offers for you. I thought it was a bunch of crap. Time for a new agent and/or call Corcoran directly. Thanks again!

Posted by: guest at March 13, 2008 8:06 PM

kdabrowski doesn't know what he's talking about. HSBC actually has a program (community works) that offers lower rates for "risk" neighborhood buildings.

Just call Corcoran and make your offer. You don't need a broker yourself!

Good Luck

Posted by: guest at March 13, 2008 10:36 PM

Which neighborhoods does HSBC define as "risk"?

Posted by: guest at March 14, 2008 2:31 AM

In terms of "risk" neighborhoods, a lot of banks have programs to give incentives to purchasers in many neighborhoods in Brooklyn. The incentives include paying some of the closing costs, waiving application fees, giving a better interest rate to a slightly less qualified person, etc. Certain banks have this for a lot of Brooklyn. I had Wachovia and Chase both offer such incentives for a purchase in Sunset Park, there's nothing shady about it. If you're buying in Brooklyn always ask if there are any mortgage deals available to people buying in your zip code. One interesting thing is that Wells Fargo didn't offer any deals because they said only banks with actual branch offices in NY were able to do so.

Posted by: guest at March 15, 2008 11:07 AM

It is illegal for a bank or lender to deny a home loan based on the location of the home. That practice is called "redlining" and it is something that was widespread "back in the day."

Even Park slope was redlined in the 60's and 70's from what I understand.

The bank could deny the loan if the appraisal that they order for the home comes in at a figure lower than the price you will be paying. That is common, and it happens just as often in high-end nabes with high end properties.

Your pre-approval letter should be enough to get a Yay or Nay from the seller. The prequalification letter means nothing. Meanwhile, if the seller accepts your offer, the seller can continue to show the home while you obtain a mortgage. They might even secure a backup offer which is reasonable for them to do.

Call the listing agent directly.

Posted by: guest at March 15, 2008 7:11 PM